Waiting to invest in SHARIABEES? Look for alternatives because it ranked worse than it's peers

RELIANCE ETF SHARIAH BEES ranked among the worst performers today. It delivered -1.81% to close at 235.5. It's recent 5 day performance has been -0.15%, +1.09%, 0.0%, -0.17% and -0.67%.

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SHARIABEES showed a flat trend over the last 3 months. During this period SHARIABEES delivered +0.99% and saw a maximum drawdown of -7.46%. It has been unusually choppy during this period. Long term investors are better off avoiding investing in SHARIABEES till volatility reduces and a clear trend emerges.

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Monthly Performance

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SHARIABEES has been underperforming the NIFTY-50 index in recent time. It showed significant underperformance (compared to the NIFTY-50 index) from 12 Feb, 2016 to 23 Aug, 2018. Over the last 3 years and 14 days, SHARIABEES underperformed the NIFTY-50 index on 50% days. Which indicates that on days SHARIABEES underperforms the NIFTY-50 index, it's performance is marginally worse than on the days it outperforms the NIFTY-50 index.

During the last three months SHARIABEES delivered losses on 57% days. However, it still managed to end this period in a profit. It's best return during this period (of +5.71%) was on Monday, 7 Jan, 2019. While it's worst loss in the same period (of -5.25%) was on Tuesday, 8 Jan, 2019. The longest stort-term trends during this period were 5 profitable and losing days. The bullish trend (which returned +4.72%) started on 11 Dec, 2018 and went on till 17 Dec, 2018 while the bearish trend (which returned -6.72%) started on 8 Jan, 2019 and went on till 14 Jan, 2019.

The last 12 months saw SHARIABEES's investors making profits in 7 months and incurring losses in 5 months. During the last year, SHARIABEES delivered profits in more months than NIFTY-50 index. SHARIABEES was also a more risky investment than NIFTY-50 index as it's worst month in the last year, Feb 2018, returned -6.67% compared to -6.42% returned by NIFTY-50 index in Sep 2018. SHARIABEES and NIFTY-50 index, both had periods of 3 consecutive profitable months.

I will never be in the stock market. It's just gambling. I'm a gambler, but I'll gamble on the practicality of things.
-- Jeremy Renner

SHARIABEES is currently seeing overall fall in volatility. In comparison, the NIFTY-50 index is seeing decrease in volatility. During the last three months, there was a significant fall in SHARIABEES's volatility from 23 Oct, 2018 to 19 Dec, 2018. While there was a significant fall in the NIFTY-50 index's volatility from 31 Oct, 2018 to 5 Dec, 2018.

Advanced/professional short-term investors should note that SHARIABEES has negative skewness in it's return distribution. This indicates that investors may need to stay invested through long periods of drawdown before expecting a recovery.

SHARIABEES has more chance of extreme outcomes than the NIFTY-50 index. Therefore, SHARIABEES must receive a lower allocation than NIFTY-50 in your portfolio. NIFTY-50 index usually has shorter drawdown period than SHARIABEES.

Based on your interest in SHARIABEES you may find it interesting to know that ~CHEMICALS and BAJFINANCE have both shown remarkable performance and deserve to be on every investors' watchlist.